Scottish letting agents give us their views on their local market.
“There seems to be a cautious air of optimism returning to the Aberdeen market. Newspaper headlines predicting an uplift in the oil industry is feeding a general feeling that the worst is hopefully behind us. The spectre of Brexit and a possible Indyref2 are of course looming large in the background and the uncertainty caused by these may be the pin to pop this bubble of optimism. However, in the meantime tenant activity levels remain high with plenty of viewings and offers being made. Tenants do of course still have a wide selection of properties to choose from and it’s those which are presented well and set at a realistic rental which are attracting the most interest. In our experience we find rental levels have stabilised and time to let figures are slowly improving. I believe this trend will continue in the latter half of the year.”
“Confidence in the PRS is still strong in our neck of the woods (despite continued political shocks) with investors now getting yield returns exceeding that of our southern counterparts. Whilst rents in Glasgow were under a degree of pressure during Q1, the downward movement seems to have been arrested by stronger demand in the following months. Given these signals, we expect the balance of the year to continue to strengthen overall with investors seeing Glasgow and Scotland more widely an excellent place to invest in property.”
“A very positive start to Q2 echoing Q1 performance for the rental market with lets per month consistently trending higher than previous quarters. We are advising landlords and investors around options to increase profitability of their properties either through seasonal short term market shifts or giving knowledge and guidance on renovation projects to provide increased rental yields through a full year term. December will see the introduction of the PRT; whilst it does not affect current SATs, we will guide landlords around the impact of PRT and this will undoubtedly change the market place into 2018.”
“Q2 has seen continued positive movement in the Aberdeen market. We have noted in particular that the larger properties are now moving well as we approach the busy summer period. There still remains plenty of choice for tenants in the current market so there is a need for landlords to upgrade and improve the quality of stock of rental accommodation to ensure that their property rents in what is a very competitive market. Overall, the positive movement in the market compared to the last two years in Aberdeen gives great encouragement to the local economy in general.”
“The Edinburgh lettings market has enjoyed a continued high level of activity in Q2. The most notable trend has been the influx of investors looking to source buy-to-let opportunities. These investors want quality properties that will rent well, for which they are willing to pay a premium, demonstrating that, despite political turmoil, property is still seen as a sound investment. Although property prices are rising and buyer competition can be fierce, increasing rents have resulted in investment yields holding steady at around 4-6%. For tenants, one bedroom flats continue to be most in demand, resulting in increasing rents and strong competition.”
“Since the beginning of the year there are encouraging signs that the Aberdeen market has now bottomed out and rents are going up for certain properties. What is noticeable is that properties that are in good condition internally are still very much sought after, so we have had a lot of landlords refurbishing their properties over the last year or so and this has paid off for them in that the properties have rented out very quickly and achieved a good rental figure. Level of enquiries from potential tenants is very high at present so looking forward to a busy summer period.”
“While the total number of properties available in Aberdeen doesn’t appear to be on the way down just yet, optimism is increasing and we are seeing a lot of activity and offers with some properties going very quickly. Confidence levels are up in the North Sea oil and gas industry with reports of businesses planning growth, but with big projects at the Harbour and the Western Peripheral Route underway as well the Aberdeen market is looking more (dare I say it?) strong and stable…”
“As ever the demand is for well-presented property within walking distance to the city centre. Hot spots Dalry and Fountainbridge have performed particularly well though they may not offer quite as high rents as the ever popular Morningside and Brunstfield areas, but in terms of return and capital growth landlords and investors should look no further. We have set a number of closing dates for properties marketed in these areas and have achieved in excess of 10% over the asking price. With rents continuing to rise and TTLs decreasing this is great news for anyone thinking about investment in the capital.”
“The second quarter of 2017 has seen rents consistently go up with landlords keen to see this trend continue based on mortgage interest relief changes. The one and two bedroom market has been extremely active and with a limited amount of stock coming to the market we’ve seen high volumes of applications from prospective tenants and strong rents, which is great news for landlords. The larger properties (family house market in particular) have been a little more subdued, but an improvement from the first quarter saw a lack of applicant demand in this section of the market, which in turn saw the average time to let slow down. We’ve seen increased new business from landlords looking to change agency for better service or more professionalism given the coming legislative changes, with a slowdown in the number of first time BTL investors likely owing to the Additional Dwelling Supplement (LBTT). Also, changes to HMO application frequency has been welcomed by landlords given the slow turnaround of the current standard one year license renewals.”
“After a strong and predictable start 2017, Q2 has been a time of uncertainty in the political world leading to investors and tenants to take a more cautious approach. Whilst the demand from tenants remains high, we have found stock levels to be struggling, this is likely to be a result of low levels of properties on the sales market, meaning Buy To Let investors are finding it increasingly harder to secure a potential rental property. In turn, this has meant that for those properties on the rental market we are seeing rents increasing, especially for one bedroom properties which are recording unprecedented increases in YOY rent. We would now normally be entering what was traditionally known as the busiest time of year for the rental industry. However, it remains to be seen if this will be the case in 2017.”
“The Key Place offices are experiencing high demand for rental properties in our operating areas of Central and South East Scotland, reflective of the number of people calling the PRS home. All offices report low time to let and rents remain high. Looking specifically at the Central Belt, we have a huge demand for 3 bedroom homes. Average rents have increased in this area for 1 and 2 bedroom properties, with 1 bedroom at £395; 2 bedrooms at £510 and 3 bedrooms at £595. Average monthly yields are around 7%, making it an ideal investment area. The Key Place has also experienced an increase in the number of landlords keen to use our services in all areas.”
“The buoyant West Lothian market demonstrates that the fundamentals of the PRS remain in place here, despite the current political chaos and the misguided policies of the UK and Scottish Governments in this sector. People still want and need to rent property as their home; demand for rental property remains high; landlords favour physical assets as investments for income, with the alternatives unattractive; and financial returns are good, with rents increasing. As always, changing life circumstances such as a new job location, retirement and financial good fortune lead people into buy to let, despite the activities of the politicians.”
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